Those following along with Reed's, Inc. (NASDAQ:REED) will no doubt be intrigued by the recent purchase of shares by John Bello, Chairman & Interim CEO of the company, who spent a stonking US$1m on stock at an average price of US$0.60. That purchase boosted their holding by 130%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
The Last 12 Months Of Insider Transactions At Reed's
In fact, the recent purchase by John Bello was the biggest purchase of Reed's shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$0.73 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Reed's share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 1948699 shares worth US$1.5m. On the other hand they divested 726100 shares, for US$1.9m. Over the last year we saw more insider selling of Reed's shares, than buying. They sold for an average price of about US$2.56. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is US$0.73). The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Reed's better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 8.5% of Reed's shares, worth about US$2.8m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Reed's Insider Transactions Indicate?
The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. We're not thrilled with the relatively low insider ownership and the longer term transaction history. But we like the recent purchasing. Of course, the future is what matters most. So if you are interested in Reed's, you should check out this free report on analyst forecasts for the company.
But note: Reed's may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.